Question

Ankush wanted to purchase a LCD (TV) and went to a Showroom. He found that LCD with
marked price of Rs. 30,000/-, is available with Cash payment alongwith 5% discount or for Rs.
5000 as cash down payment followed by 3 equal monthly installments with interest at the rate of
10% per month. Find the difference in amount payable under the two schemes.

Answer 1

1st scheme:
MP=rs. 30000 discount=5% cp of ankush=sp of the tv=Rs. $\frac{95}{100}$X30000                                                                                            =Rs. 28500
 2nd scheme:
 MP= rs. 30000
Down payment= rs. 5000
Remaining money is to be given in three equal installments
3 installments=(30000-5000)/3=Rs. 8333.33
Interest per month=10%
 Amount to be paid per month=$\frac{110}{100}$X8333.33=Rs. 9166.63
 amount paid in 3 months(the installments)= Rs. (916.663 X 3)=Rs.27499.89
total amount paid= Rs.(27499.89+5000)=Rs. 32499.89

Answer 2

Scheme one

30,000*95/100 (5% discount)
=28,500

scheme two-

down payment =5,000

total sum left=30,000-5,000=25,000

Simple interest(S.I)=(Principle Amount*rate*time)/100

SI=(25,000*10*3)/100
    =2,500*3
    =7,500

Therefore total amount that would be paid =25,000+7,500+5,000
                                                                    =38,000

Therefore difference is 38,000-28,500=9,500